Artemis ILS NYC 2020

Menu

Reinsurance News

FedNat forecasts Q3 cat losses at $11mn, with no reinsurance triggered

16th October 2019 - Author: Matt Sheehan

Florida-based primary insurer FedNat Holding Company has estimated that it will incur gross catastrophe losses of $11.0 million in the third quarter of 2019.

FedNat HoldingThis figure includes $8.0 million from FedNat’s non-Florida property business, which is subject to a 50% profit-sharing agreement with the non-affiliated managing general underwriter that writes FedNat Insurance Company’s (FNIC) non-Florida property business.

Therefore the company only expects the losses to reduce its Q3 pre-tax income by $7.0 million.

FedNat’s catastrophe reinsurance protection for the period ending June 30, 2020 provides coverage on individual events if gross losses exceed $20 million for FNIC’s Florida and non-Florida business.

The retention amount is $2 million for Monarch National Insurance Company’s business, which is all within the state of Florida.

As such, FedNat is not anticipating that any single catastrophe event in Q3 will reach these retention levels.

FedNat explained that its catastrophe losses consisted of Hurricane Dorian, Hurricane Barry, and Tropical Storm Imelda, which impacted South Carolina, Florida, Louisiana and Texas.

The announcement follows estimates from re/insurers AXIS Capital, Everest Re, and RenaissanceRe, who each pegged their Q3 cat losses at $150-175 million, $280 million, and $155 million, respectively.

Recent Reinsurance News

Getting your daily reinsurance news from Reinsurance News is a simple way to receive only the reinsurance industry news that matters, delivered directly to your email inbox.

  • Only email is mandatory, but the more you tell us about yourself the better we can serve you in future!
  • This field is for validation purposes and should be left unchanged.

By submitting the form you are giving your consent to be emailed by us.

Read previous article:
AXA looking at potential sale of Central European business, says Reuters

Reuters has reported that a number of sources have claimed that French insurance giant AXA is considering the sale of...

Close